Correlation Between Hanjin Transportation and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and INFINITT Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hanjin Transportation and INFINITT Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and INFINITT Healthcare Co, you can compare the effects of market volatilities on Hanjin Transportation and INFINITT Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hanjin Transportation with a short position of INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and INFINITT Healthcare.
Diversification Opportunities for Hanjin Transportation and INFINITT Healthcare
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanjin and INFINITT is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare and Hanjin Transportation is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hanjin Transportation Co are associated (or correlated) with INFINITT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFINITT Healthcare has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Hanjin Transportation and INFINITT Healthcare
Assuming the 90 days trading horizon Hanjin Transportation is expected to generate 1.31 times less return on investment than INFINITT Healthcare. But when comparing it to its historical volatility, Hanjin Transportation Co is 2.42 times less risky than INFINITT Healthcare. It trades about 0.18 of its potential returns per unit of risk. INFINITT Healthcare Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 415,000 in INFINITT Healthcare Co on November 3, 2024 and sell it today you would earn a total of 8,000 from holding INFINITT Healthcare Co or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Hanjin Transportation Co vs. INFINITT Healthcare Co
Performance |
| Timeline |
| Hanjin Transportation |
| INFINITT Healthcare |
Hanjin Transportation and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and INFINITT Healthcare
The main advantage of trading using opposite Hanjin Transportation and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, INFINITT Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INFINITT Healthcare will offset losses from the drop in INFINITT Healthcare's long position.| Hanjin Transportation vs. KG Eco Technology | Hanjin Transportation vs. Infinitt Healthcare Co | Hanjin Transportation vs. SK Chemicals Co | Hanjin Transportation vs. Bosung Power Technology |
| INFINITT Healthcare vs. Samlip General Foods | INFINITT Healthcare vs. Incar Financial Service | INFINITT Healthcare vs. Dgb Financial | INFINITT Healthcare vs. CJ Seafood Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |